In yesterday's update on gold (XAU/USD), I noted that price was within a consolidation range, approaching the range resistance. Today, it is breaking this consolidation range resistance and opening up at least a short-term bullish outlook.
- After a slide in early October, gold has found support in the 1240-1250 area.
- After a bit of consolidation in the last couple of weeks, price finally broke above the 1265 range resistance.
- The first resistance will be around 1277. This is a previous resistance pivot.
- I think we can expect some resistance here under 1280.
- But if price can hold above 1260 on a dip, we should anticipate further bullish correction.
- The 1300-1310 area is the maximum target for me at the moment. We should anticipate selling here.
- This is a previous support area, and where the 200-period SMA reside in the 4H chart.